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A comprehensive, legally structured employment contract draft tailored for hiring physicians, covering compensation, call schedules, benefits, and malpractice responsibilities.
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Hiring a physician is one of the most significant investments a healthcare practice or hospital will make, and securing that relationship requires a rock-solid employment agreement. This document is far more than a standard job contract; it is a highly specialized framework that defines the daily realities of clinical practice, financial compensation, and professional risk. You need this draft when expanding your practice, replacing a departing provider, or formalizing a partnership with a new medical doctor. A great agreement balances the financial protections your organization needs with the competitive incentives required to attract top-tier medical talent. It should cleanly outline complex compensation structures, call schedules, and malpractice coverage without leaving room for interpretation. By clearly defining boundaries and expectations from day one, a well-crafted draft protects patient care continuity, safeguards your practice’s financial health, and fosters a trusting, long-term relationship between your administration and your clinical staff.
The responsibility for paying for tail coverage must be explicitly negotiated and documented in the agreement. Typically, if the employer terminates the contract without cause, the employer pays, whereas if the physician resigns, the physician covers the cost. Some practices choose to split this cost equally or vest the coverage over a set number of years of service.
Work Relative Value Units (wRVUs) measure the volume and complexity of clinical services provided, independent of actual billing collections. The contract defines a specific dollar-conversion factor multiplied by the doctor's accumulated wRVUs to determine productivity bonuses. This model rewards clinical effort and protects physicians from the practice's billing inefficiencies.
Enforceability varies significantly by state, with some jurisdictions completely banning medical non-competes to protect patient access to care. Where permitted, courts only enforce them if they feature reasonable geographic boundaries, typically a few miles around the clinic, and last under two years. The draft must align strictly with the specific state's medical licensing board regulations to hold up in court.
The industry standard for a physician's "without cause" termination notice is 90 to 120 days. This extended window is necessary to ensure patient abandonment is avoided and to allow the practice sufficient time to transition patient charts. Agreements with shorter notice periods often disrupt clinic operations and compromise patient care continuity.
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